Landstar System Inc., Jacksonville, Fla., reported a 36% increase in revenue to a record $590 million in the 2004 fourth quarter, up from $434 million
in the 2003 fourth quarter.
Net income for the 2004 fourth quarter was a record $24.6 million, or $.40 per diluted share, compared to net income of $15.1 million, or $.24 per diluted share, for the 2003 fourth quarter.
Included in the 2004 fourth quarter revenue was $35.9 million of revenue related to disaster relief efforts for the storms that impacted the southeastern U.S. during the third and fourth quarters. These emergency transportation services were provided primarily under a contract between Landstar Express America Inc. and the United States Federal Aviation Administration. The revenue recognized under this contract generated $6.8 million of operating income which, net of related income taxes, increased net income by $4.2 million, or $.07 per diluted share, in the 2004 fourth quarter.
Landstar's carrier group of companies generated $401 million of revenue in the 2004 fourth quarter, compared with revenue of $326 million in the 2003 fourth quarter. In the 2004 and 2003 fourth quarters, the carrier group invoiced customers $23.2 million and $8.7 million, respectively, in fuel surcharges that were passed on 100% to business capacity owners and excluded from revenue.
Landstar's multimodal services group of companies generated $181 million of revenue, including the $35.9 million related to emergency transportation services, in the 2004 fourth quarter compared with $101 million of revenue in the 2003 fourth quarter. Operating margin in the 2004 fourth quarter was 6.9% compared with 5.8% in the 2003 fourth quarter. The $35.9 million of revenue attributable to emergency transportation services increased operating margin in the 2004 fourth quarter approximately .8%.
Net income for the 2004 fiscal year was $71.9 million, or $1.16 per diluted share, compared to net income of $50.7 million, or $.79 per diluted share, for the 2003 fiscal year.
"Landstar's 2004 fourth quarter and full year performance was outstanding," said Landstar President and CEO Henry Gerkens. "Consolidated revenue increased by 36%, compared to the 2003 fourth quarter, to the highest quarterly revenue in Landstar history. For the full 2004 year, revenue grew 27% to over $2 billion. Overall, the increased revenue in 2004 resulted in a 47% increase in diluted earnings per share over the 2003 fiscal year."